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Sega slashes profit projection by 36% due to slowing amusement machine business

Sega has trimmed back its year's profit forecast due to a slump in its Pachinko and amusement machine business.

GI.biz reports that for the fiscal year ended March 31, 2014, Sega has reduced its revenue forecast from ¥485 billion to ¥377 billion, a reduction of 23% that equates to $3.7 billion.

The company's net income projection has fallen 36% from ¥47 billion to ¥30 billion; a $294 million drop, while its operating income has plummeted 49% from ¥73 billion to ¥37 billion.

It's worth noting that Sega's game business is not the issue here, rather the firm's amusement machine divisions.

In fact; Sega's last round of financials suggested that the company's focus on digital sales seems to be paying off. Profits are up overall.

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Dave Cook avatar

Dave Cook

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Dave worked on VG247 for an extended period manging much of the site's news output. As well as his experience in games media, he writes for comics, and now specializes in books about gaming history.

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